Overview
Our Distressed Debt Group includes over 20 transactional and insolvency lawyers with both U.S. and global experience. Our lawyers represent investors in the origination and documentation, purchase and sale (at par and distressed) and restructuring of syndicated and “clubbed” debt, with a particular focus on investors in multi-tranche and junior capital structures. We provide analysis and advice on the underlying loan documents, credit structures and applicable insolvency laws, coupled with practical strategic advice to convert debt to a controlling equity position.
Our team, located in our New York, Boston, Los Angeles and London offices, has the experience to provide the full range of services necessary to assist clients with distressed situations. Our lawyers are experienced in finance, restructuring, corporate, securities, tax, labor and other disciplines relevant to distressed investors. While we are adept at developing creative solutions to achieve a consensual distressed acquisition, we are also “battle tested” in litigating issues that cannot be resolved consensually, such as contested foreclosures, use of cash collateral, cramdowns, valuation, officer and director liability, and other related litigation matters.
Areas of Focus
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Strategic Distressed Debt Acquisitions and Restructuring
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Special Opportunity Investments
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Multi-Tranche Finance Investments
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Special Situation Restructurings
Key Representations
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An alternative investor in the acquisition of debt of a market-leading leasing company. Our team was engaged to prosecute confirmation of a contested cram-down plan of reorganization affecting a debt for equity exchange. The plan of reorganization was successfully confirmed in only 45 days with the company emerging with a “clean” balance sheet and the investor in control.
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A syndicate of hedge funds and other lenders in the exchange of $228 million debt for equity of an industry-leading continuing medical education company. Our team was engaged following a stalemate among the existing parties and successfully negotiated the deal in 60 days and navigated the transaction to a close in only a few months.
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A syndicate of second lien lenders in the exchange of $45 million debt for both preferred and common equity of an industry-leading brand-name retail product company. Our team was engaged by the second lien lenders and successfully negotiated the transaction to a close in only a few months for a projected recovery of over 50 percent.